Contract Law of the People's Republic of China Updated: 2006-04-17 10:00 Article 98 The termination of the rights and obligations of a contract may
not affect the force of the settlement and clearance clauses in the contract.
Article 99 Where the parties to a contract have debts due mutually and the
category and character of the debts are the same, any party may offset his debt
against the other's one, except that the debts may not be offset according to
the provisions of the laws or to the character of the contract.
Any party advancing to offset the debts shall make a notice to the other
party. Such notice shall be effective upon the arrival at the other party. The
offset may not be accompanied by any conditions or time limit.
Article 100 Where the parties to a contract have debts due mutually and the
category and character of the debts are different, the debts may be offset
against each other if both parties have reached a consensus through
consultation.
Article 101 The obligor may deposit the object if the debt obligations are
difficult to be performed under any of the following circumstances:
(1) The obligor refuses to accept them without justified reasons; (2) The
obligee is missing; (3) The obligee is deceased and the heir is not yet
determined, or the obligee has lost his conduct capacity and the guardian is not
yet determined; or (4) Other circumstances as stipulated by law.
If the object is not fit to be deposited or the deposit expenses are
excessively high, the obligor may, according to law, auction or sell the object
and deposit the money obtained therefrom.
Article 102 After the object is deposited, the obligor shall, except that the
obligee is missing, make a notice promptly to the obligee or the obligee's heir
or guardian.
Article 103 The risk of damage to and missing of the object after being
deposited shall be borne by the obligee. During the period of depositing, the
fruits generated by the object shall belong to the obligee. The deposit expenses
shall be borne by the obligee.
Article 104 The obligee may claim the deposited object at any time. However,
if the obligee is under a debt due to the obligor the deposit authorities shall
refuse him to claim the deposited object at the request of the obligor, before
the obligee has performed his debt obligations or provides a guaranty.
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